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Rapido plans to expand to 500 cities months after raising $200 million in funding

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Sumit Vishwakarma
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Rapido 2025

Ola and Uber rival Rapido has announced ambitious plans to expand its services to 500 cities across India, significantly increasing its current operational footprint of over 120 cities.

The expansion will roll out in phases starting in February, with an initial focus on key states such as Karnataka, Gujarat, Tamil Nadu, West Bengal, and Rajasthan.

In subsequent phases, Rapido plans to extend its services to additional regions, including Punjab, Haryana, Uttar Pradesh, Uttarakhand, and many more.

The announcement comes just months after the company achieved unicorn status. In September last year, the Bengaluru-based startup raised $200 million in funding, reaching a post-money valuation of $1 billion.

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Ambitious growth strategy

Rapido, founded in 2015, started with two-wheeler ride-hailing before branching out into three-wheeler and cab services. It now handles 3.6 million rides every day.

Co-founder Pavan Guntupalli, while speaking at the Bharat Mobility Expo 2025, said the move to 500 cities underscores the company’s vision of connecting riders and drivers across diverse regions, while also generating significant earnings for its driver partners, known as “Captains.”

He said more than 1.3 crore Captains have collectively earned over Rs 15,000 crore on the platform.

Financial performance

Rapido saw its operating revenue climb 46% in fiscal year 2024 to reach Rs 648 crore, spurred by expansions into new businesses and a rise in customer bookings. 

During the same period, the company lowered its net loss to Rs 371 crore from Rs 674 crore in the previous fiscal year, reflecting improved cost controls and a stronger revenue base.

Competitive landscape

Rapido’s announcement comes as it competes with established players such as Uber and Ola, as well as emerging platforms like Namma Yatri.

Despite the crowded market, Rapido says it remains focused on introducing new services and exploring fresh use cases in ride-sharing.

Co-founder and CEO Aravind Sanka recently reiterated the company’s commitment to adding new cities and increasing its presence in existing locations, saying it aims to remove barriers that keep people from using ride-hailing services.

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